Revenue eBrief No. 144/19
Tax and Duty Manual Part 15-01-44 – Earned Income Tax Credit – has been updated to include an example of an individual who is employed by his or her spouse (see Example 3 in Section 2).
Mary is a sole trader and earns €50,000 per annum. This is her sole source of income. Is she entitled to the Earned Income Tax Credit?
Yes – as the earnings are not relieved by way of the Employee (PAYE) Tax Credit, the Earned Income Tax Credit is available.
Mary is married to Henry and employs him to work for her in her business. Henry earns €20,000 per annum and this is his sole source of income. Is he entitled to the Earned Income Tax Credit?
Yes – as Henry is not eligible for the Employee (PAYE) Tax Credit because his employer is his spouse, he is entitled to the Earned Income Tax Credit.